Bulgaria Mortgage Market Shrinks 20 Times in 2 Months

Only BNG 18 M have been invested in the mortgage market in January and February of 2009, compared with BGN 355 M for the same period during the previous year. Photo by Sofia Photo Agency

The mortgage loan market has shrunk 20 times just in the first two months of 2009, compared with the same period of 2008.

The data was revealed through a report of the company "Residential Park Sofia," presented at the anti-crisis real estate conference, held in Sofia Friday.

Only BNG 18 M have been invested in the mortgage market in January and February of 2009, compared with BGN 355 M for the same period during the previous year.

The report further offers an even grimmer forecast until September 2009 with more positive outlook for October, depending on the release of the frozen European funds and the signing of a safeguard clause with the International Monetary Fund (IMF).

On their part the "King Sturge" company recommended to Bulgarian colleagues to focus on better quality in the property sector by offering good returns at profitable prices as a condition to maintain the country's real estate attractive for investors.

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